By entering your daughter's Roth IRA contribution into TurboTax while preparing your daughter's tax return, TurboTax will keep track of your daughter's basis in Roth IRA contributions. Your daughter will need to know the amount of her basis if she ever takes a distribution from her Roth IRAs begore age 59½. TurboTax will also compare the contribution amount to her earnings from employment to ensure that she has not made an excess contribution (or to prepare Form 5329 to assess the penalty if she has contributed more than permitted). She might also qualify for a Retirement Savings Contributions Credit depending on her AGI and tax liability.
